The Government of Ghana has settled outstanding energy sector debts totalling approximately US$1.47 billion as of December 31, 2025, the Ministry of Finance has announced. The payments, completed within the first year of the Mahama Administration, resolved longstanding arrears that had severely strained the sector. A key component of the intervention was the full repayment of the World Bank Partial Risk Guarantee (PRG), which had been eroded by persistent defaults under the previous administration.
In its statement issued on Monday, January 12, the Finance Ministry confirmed that the government disbursed US$597.15 million, including accrued interest, thereby fully restoring the guarantee facility. In addition, all outstanding gas invoices owed to ENI and Vitol for electricity generation were settled. These payments totalled about US$480 million as at December 31, 2025, ensuring Ghana is fully up to date on its obligations to the Sankofa Gas Project partners.
Settling Arrears with Gas Partners and IPPs
The US$1.470 billion total expenditure for the 2025 fiscal year covers several critical areas of the energy value chain, including:
- Sankofa Partners (ENI and Vitol): The government settled approximately US$480 million in outstanding gas invoices, bringing Ghana current on its obligations for electricity generation gas supply.
- Independent Power Producers (IPPs): Approximately US$393 million was paid toward legacy IPP debts in 2025 alone.
- Strategic Roadmaps: New agreements have been reached with Tullow Oil and Jubilee Field partners to ensure a sustainable roadmap for future gas off-take payments.
The Ministry of Finance noted that prudent fiscal management and adequate budgetary provisions have been put in place to sustain timely payments going forward.
Read the Finance Ministry’s full statement below:
Source: Evans Effah
